Big Lots To Close All Stores and Hold Going-Out-of-Business Sales

Big Lots announced on Dec. 19, 2024, that it will close all its stores. Big Lots is a closeout retailer dedicated to delivering customer bargains on home goods, furniture, décor, pantry items, and more.

According to a press release, the retailer does not anticipate completing its asset purchase agreement with Nexus Capital Management, which was first announced in September. However, the company will continue to work toward achieving “an alternative going concern transaction with Nexus or another party.” The release also revealed that the company’s goal would be to complete any sale by early January 2025.

In the meantime, Big Lots has commenced going-out-of-business sales at all its stores in order to “protect the value of its estate.” Discounting store merchandise will not stop any sale with an outside entity moving forward, according to the company.

The retailer will continue to serve its customers both in stores and online and will provide updates on any outside purchase progress as they become available. According to Big Lots, every remaining location, about 870, will begin discounting merchandise in the coming days.

President and CEO Bruce Thorn stated in the release, “We all have worked extremely hard and have taken every step to complete a going concern sale. While we remain hopeful that we can close an alternative going concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the GOB process.”

Big Lots Inventory Came in Below Expectations

Big Lots says all stores are closing, will begin 'going out of business' sales https://t.co/iIBqH06OiZ

— FOX61 (@FOX61News) December 19, 2024

In recent months, Big Lots had been working on an asset purchase agreement with Nexus Capital Management, but it appears the deal has now collapsed. Bloomberg reports that a valuation appraisal of the bankrupt company’s inventory came in below expectations, which made it economically unviable for Nexus Capital Management to proceed with the sale.

Bloomberg reported that “an official committee of unsecured creditors on Monday demanded that the company either pay tens of millions of dollars in back rent, or be liquidated by a court-approved trustee. US Bankruptcy Judge J. Kate Stickles is scheduled to hear a status report on that dispute and the Nexus sale during a court hearing.” Subsequently, Big Lots has asked Stickles to delay consideration of landlord complaints involving the prior Nexus deal.

Big Lots has suffered from declining sales for years. Rising inflation has added to shoppers’ economic stress, and kept them out of the stores despite the many deals the retailer promised its customers via its loyalty program.

In September, the closeout retailer filed for bankruptcy. In the months thereafter, there were four rounds of store closures announced before this final push to shut down all remaining retail spaces.

According to a press release, Big Lots launched its new app in November “to enhance the shopping experience for its valued customers.” The app was a way to drive customers into the stores but did not perform as expected.

Big Lots currently has about 9,600 full-time employees and about 18,100 part-time employees.